Watchlist: 9/22 Windows are Hard to Close

Market Notes:

The Japanese invented candlestick charting centries before it arrive on our shores in the 1980s (thanks Steve Nison).

In the west we call these “gaps,” the Japanese call them “windows.” Windows, once opened, are very hard to close. The areas often act as support with a rising window and resistance with a falling window.

SPY 1-day candles – Chart via thinkorswim

Monday’s gap down held during yesterday’s session … I’m growing more bearish by the day. As September starts to fade I’m watching for a big sell-off to buy into.

Despite indexes, at all-time highs, most stocks have been suffering all summer. More than 50% of stock spend the summer below their 50 day moving average as I pointed out on 8/4, 8/5, and 8/18. Today 69% are below that critical level. And more than 50% are below their 200 day moving average now.

My point? The market’s been bearish despite the indexes. The large caps are just starting to catch up to the reality of the rest of the market.

The good news is after this flush out we will be in a good position to rally into the end of the year. Everyone who wanted to sell likely has already sold.

Bitcoin is looking bearish right now too. It fell below its 50 and 200 day moving averages and could retest $30,000. It tends to make its biggest moves near the end of the year too.

I’m still risk off but watching closely.

Watchlist:

*Low Float

*NNVC has resistance at $7
*LIFE has resistance at $12
*APRN watching for a setup above $5.50
CRVS has support at $7
ARQQ is on watch
RWLK has support at $2
LPTX watching for a setup above $3
INDI has support at $11.50
SPIR has support at $14
LWLG has support at $12, resistance at $14

OTC (on watch, no levels):
ILUS, ISWH, CYDY, AAPT, TGGI, AXTG, CYBL, FERN

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